It is no secret that Pakistan State Oil is a behemoth. With assets worth more than Rs 1 trillion, it is evident that the size and scale of its operations is beyond comprehension. Both in terms of commercial and industrial operations, the length and breadth of their presence is difficult to avoid. With operations of this size, it is no wonder that the sales of the company are more than the Gross Domestic Product of Monaco worth more than $10 billion. This has been complimented by the fact that the profits have also mirrored the upward trajectory being seen in its sales.
The issue for the company has been the fact that the high amount of profits are coinciding with a deteriorating cash and credit situation which is proving to be an obstacle to the unobstructed flight that could be seen. At one hand is the circular debt which is leading to a bloated asset being created on the balance sheet. On the other hand, is the lack of better management to address the finance cost that is being experienced by the company. This aspect becomes magnified when it is seen that there are reserves of cash which can be utilized by the company. Sadly, this is not being done which is impacting the profitability of the company as well.
With the resolution of circular debt on the cards, there is a need for the management to utilize its resources better to fully unlock the potential that is present at the company. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
